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REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Budget <br />Agenda Date Requested:October 14, 2013 <br />Source of Funds:Inventory Acct <br />Requested By:Cherell Daeumer <br />Account Number:00161465159094 <br />Department:Finance/Purchasing <br />Amount Budgeted:Inventory <br />Report: Resolution:Ordinance: <br />Amount Requested:$786,317 <br />Exhibits:Bid Tabulation <br />Budgeted Item:YESNO <br />Exhibits: Price Comparison <br /> <br />Exhibits Houston OPIS Rack <br />SUMMARY & RECOMMENDATION <br />Due to contract issues with their supplier,Oil Patch; the City’s current contractor for fuel,will <br />notbe able tohonor the remainder of their contract,which was due to expire on December 14, <br />2013.This situation elevated the need to secure a new contractor for fuel. <br />Advertised, Sealed Bid # 13027-Fuels and Lubricants was opened and read on August 20, 2013. <br />Bid notices were sent to thirteen (13) vendors with six (6) returning bids.This bid was broken <br />out in three (3) Sections, Section 1-Fuel, Section 2-Lubricants and Section 3-Emergency <br />Services. <br />The price of fuel for both regular unleaded and diesel is calculated on the daily price listed on the <br />Oil Price Information Service Index (OPIS) report for Houston, Texas, specifically the low rack <br />price.Pricing wasrequested for plus, flat or minus OPIS per gallon, and any delivery fee.Fuel <br />is delivered to Public Works and to the Golf Course. Apache Oil submitted the overall lowest <br />price for Section1.Attached isa price comparison ofthe bidders using the September 19, 2013 <br />OPIS,and also aprice difference from the last contract price and the proposed. Using estimated <br />quantities the annual cost for FY 2014, is estimated to be $786,317.In FY 2013$779,369 was <br />spenton fuel purchases. <br />Staff would like to re-evaluate Section 2-Lubricants of this bid and send out pricing at a later <br />date. The types of lubricants in section 2 no longer meet the city’s needs. Newer vehicles now <br />require a 5w20 synthetic oil that was not included in the bid. <br />The intent of Section 3-Emergency Services is tohave plan in place to obtain fuel in case of <br />catastrophic conditions. Staff is recommending awarding the primary contract for emergency <br />services to Apache andtoalsosecureasecondary contract withSun Coasttoensure the city will <br />not lose fuel supply during an emergency situation.SunCoast currently has the State of Texas <br />contract for emergency services that the Ccity would be able to utilize. <br />Staff recommendsawarding Section 1-Fueland Section 3 –Emergency Services to Apache Oil, <br />and awarding Sun Coast as secondary for Section 3. Both Section 1-Fuel and Section 3- <br /> <br />